28th Jun 2019 18:35
(Alliance News) - IAG on Friday announced the final terms for its EUR1 billion bond issue announced earlier in the day.
IAG will raise EUR1 billion via the issue of two tranches of senior unsecured bonds. The airline operator intends to raise EUR500 million via an issue of bonds due July 4, 2023 and a further EUR500 million via an issue of bonds due July 4, 2027.
The 2023 series A bonds will have a fixed rate interest of 0.5% per annum, while the 2027 series B bonds will have a 1.5% fixed rate interest.
The net proceeds the two offerings will be used by IAG for general corporate purposes, including to fund the repurchase of IAG's outstanding EUR500 million 0.25% convertible bonds due 2020.
IAG had announced that buyback on Monday, raising the repurchase price on Wednesday to EUR100,350 per EUR100,000 face value. On Monday, IAG had said it was considering a new euro-denominated bond issue and said the repurchase depended on the issue's success.
Shares in IAG closed up 5.0% at 476.90 pence on Friday.
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